Linear Regression - Reverse Up/Down Strategy

For my first foray into pine script I took the code from the generic "Consecutive up/down" and flipped the logic. I added a linear regression filter to try and stay with the overall trend. ATR added for visual, I eventually want to use it as part of the money management.

Rules to open trade or close the opposite:
IF the linear regression slope is >=0 AND the last candle closes lower, BUY
IF the linear regression slope is <=0 AND the last candle closes higher SELL

Rules to close the opposite:
IF the linear regression slope is >=0 AND the last candle closes higher, close any open SELL
IF the linear regression slope is <=0 AND the last candle closes lower, close any open BUY

Release Notes

Go with or against the Linear Regression trend using pullbacks or looking for breakouts of consecutive bars.

Release Notes

Updated smooth moving average for ATR channel

Release Notes

Added RSI for filtering overbought and oversold conditions

Release Notes

Code cleanup.

Release Notes

moved early exit to after entry to reduce redundant position calls

Release Notes

Set default behavior to go with major trend(200 linear regression slope) and against minor trend pullbacks(4 linear regression slope)

Release Notes

Added a date range function for choosing which date to test.

Open-source script

In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.

bruce.lesko

Disclaimer

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Open-source script

bruce.lesko